Why “Pay Us If You Win” Grant Writing Models Put Organizations at Risk

When searching for grant writing support, organizations sometimes encounter offers that promise little or no upfront cost:

“You only pay if you get funded.”

While this may sound appealing, contingency-based grant writing models raise serious ethical, compliance, and credibility concerns that organizations should understand before moving forward.

What Is Contingency-Based Grant Writing?

A contingency-based model ties a grant writer’s compensation to the outcome of a funding decision. Payment may occur only if funding is awarded, be calculated as a percentage of the grant, or be reimbursed from awarded funds.

These arrangements shift risk in ways that conflict with how grant funding is designed to operate.

Why Funders Disfavor These Models

Grant funders expect proposals to be developed objectively and without financial incentives tied to award outcomes.

When a grant writer’s compensation depends on funding approval, it creates a conflict of interest and undermines the integrity of the proposal process. Many funders — particularly public agencies — explicitly prohibit or strongly discourage contingency-based fees.

Even when not stated outright, these arrangements can negatively impact credibility.

Compliance Risks for Organizations

Organizations, not consultants, are responsible for compliance. Contingency-based arrangements can result in:

  • Disallowed costs

  • Audit findings

  • Repayment obligations

  • Damage to funder trust

Attempting to pay grant writing fees from awarded funds is especially risky and frequently prohibited.

Why Ethical Grant Writers Do Not Guarantee Funding

Grant outcomes depend on factors outside the control of any grant writer, including funding availability, competition, scoring, and funder priorities.

No ethical grant professional can guarantee funding. Any model that implies otherwise misrepresents the grant review process.

The Professional Standard

Reputable grant writers operate under clear, ethical standards:

  • Grant writing fees are paid upfront

  • Fees are not contingent on award outcomes

  • Proposal development costs are never billed to grant funds

  • Grant writing and post-award services are clearly separated

This structure protects both the organization and the integrity of the application.

Our Approach

At The Grant Writing Firm, we do not offer contingency-based grant writing services. All proposal development work is paid upfront and is not dependent on funding outcomes.

When allowed, we support organizations after funding is awarded with post-award management services that are clearly distinct from grant writing.

Bottom Line

Grant funding should be pursued strategically and responsibly. Understanding how grant writing services are ethically and properly structured helps organizations avoid risk and build sustainable funding strategies.

Go to our services overview

Previous
Previous

What Funders Mean by “Organizational Capacity”

Next
Next

Why Strong Programs Still Get Denied Grant Funding